Home » News » Associations & Bodies » Government taxes ‘putting private landlords at disadvantage to BTL’
Associations & Bodies

Government taxes ‘putting private landlords at disadvantage to BTL’

NRLA highlights what many letting agents and landlords have been saying - that high taxes are hitting landlords hard.

Nigel Lewis

taxation nrla landlords

The government’s higher taxation and tougher regulation of private landlords have put this group at a ‘disadvantage to BTL and corporate landlords’, it has been claimed.

The comments are within a report for the NRLA by the London School of Economics, which says the government’s PRS policies have prompted 28% of the 1,400 landlords it polled for the report said they’re preparing to exit the sector.

The landlords in particularly singled out changes to mortgage interest relief, capital gains tax and stamp duty.

Overall, a third of respondents said the severe reduction in mortgage interest relief was the change having the greatest effect on the operation of their rental business.

Among these landlords, 39 per cent said the change meant that they were not proceeding with planned future purchases and 31 per cent said they had put plans on hold.
27 per cent of landlords said that the stamp duty levy was significant; followed by changes in the tax treatment of furniture and fittings and in the capital expenditure allowance.

Ben Beadle TDS Northern IrelandBen Beadle, Chief Executive of the National Residential Landlords Association, says: “The NRLA will be studying this report carefully as it prepares detailed plans to support investment in the sector.

“That said, it is clear that recent tax increases have deterred investment in the sector.

“With the demand for homes to rent outstripping supply this will only hurt tenants as they face less choice, higher rents and find it more difficult to save for a home of their own as a result.”

December 21, 2021

What's your opinion?

Please note: This is a site for professional discussion. Comments will carry your full name and company.

This site uses Akismet to reduce spam. Learn how your comment data is processed.